BlackRock Enhanced Equity Dividend Trust (BDJ)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21784

Name of Fund: BlackRock Enhanced Equity Dividend Trust (BDJ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Enhanced Equity Dividend Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 10/31/2011

Date of reporting period: 07/31/2011

Item 1    –    Schedule of Investments

Schedule of Investments July 31, 2011 (Unaudited)    BlackRock Enhanced Equity Dividend Trust (BDJ)
   (Percentages shown are based on Net Assets)

 

     Shares      Value  

Common Stocks

      

Aerospace & Defense – 5.9%

      

General Dynamics Corp.(a)

      84,100       $ 5,730,574   

Honeywell International, Inc.(a)

      91,500         4,858,650   

Northrop Grumman Corp.(a)

      91,900         5,560,869   

Raytheon Co.(a)

      169,300         7,572,789   

Rockwell Collins, Inc.

      24,200         1,333,178   

United Technologies Corp.(a)

      120,600         9,990,504   
     

 

 

  
        35,046,564   
     

 

 

  

Air Freight & Logistics – 0.8%

      

United Parcel Service, Class B(a)

      68,300         4,727,726   
     

 

 

  

Auto Components – 0.6%

      

Johnson Controls, Inc.(a)

      88,800         3,281,160   
     

 

 

  

Beverages – 2.3%

      

The Coca-Cola Co.(a)

      112,000         7,617,120   

Diageo Plc–ADR(a)

      75,000         6,093,000   
     

 

 

  
        13,710,120   
     

 

 

  

Capital Markets – 0.3%

      

The Bank of New York Mellon Corp.(a)

      60,000         1,506,600   
     

 

 

  

Chemicals – 3.6%

      

Air Products & Chemicals, Inc.

      17,200         1,526,156   

The Dow Chemical Co.(a)

      117,400         4,093,738   

E.I. du Pont de Nemours & Co.(a)

      164,900         8,479,158   

Olin Corp.(a)

      124,500         2,603,295   

Praxair, Inc.(a)

      44,200         4,580,888   
     

 

 

  
        21,283,235   
     

 

 

  

Commercial Banks – 6.6%

      

Bank of Nova Scotia

      119,000         6,748,045   

M&T Bank Corp.(a)

      17,100         1,474,704   

National Bank of Canada

      96,000         7,440,264   

The Toronto-Dominion Bank(a)

      59,200         4,728,304   

U.S. Bancorp(a)

      251,000         6,541,060   

Wells Fargo & Co.(a)

      448,800         12,539,472   
     

 

 

  
        39,471,849   
     

 

 

  

Computers & Peripherals – 0.7%

      

Hewlett-Packard Co.(a)

      111,200         3,909,792   
     

 

 

  

Consumer Finance – 1.1%

      

American Express Co.

      126,000         6,305,040   
     

 

 

  

Containers & Packaging – 0.4%

      

Temple-Inland, Inc.(a)

      80,000         2,401,600   
     

 

 

  

Diversified Financial Services – 3.3%

      

Bank of America Corp.(a)

      441,000         4,282,110   

JPMorgan Chase & Co.(a)

      379,000         15,330,550   
     

 

 

  
        19,612,660   
     

 

 

  

Diversified Telecommunication Services – 5.4%

      

AT&T Inc.(a)

      339,500         9,933,770   

BCE, Inc.(a)

      57,000         2,175,690   

CenturyLink, Inc.(a)

      236,700         8,783,937   

Frontier Communications Corp.(a)

      38,100         285,369   

Verizon Communications, Inc.

      261,900         9,242,451   

Windstream Corp.(a)

      153,500         1,874,235   
     

 

 

  
        32,295,452   
     

 

 

  

Electric Utilities – 3.4%

      

American Electric Power Co., Inc.(a)

      71,000         2,617,060   

Duke Energy Corp.

      119,000         2,213,400   

FirstEnergy Corp.

      25,000         1,116,250   

ITC Holdings Corp.(a)

      19,000         1,334,940   

NextEra Energy, Inc.

      95,500         5,276,375   

Northeast Utilities(a)

      68,000         2,312,000   

PPL Corp.(a)

      56,500         1,576,350   

The Southern Co.(a)

      100,000         3,954,000   
     

 

 

  
        20,400,375   
     

 

 

  

Electrical Equipment – 0.3%

      

Rockwell Automation, Inc.(a)

      27,700         1,987,752   
     

 

 

  

Energy Equipment & Services – 0.7%

      

Schlumberger Ltd.(a)

      49,100         4,437,167   
     

 

 

  

Food & Staples Retailing – 0.8%

      

Wal-Mart Stores, Inc.

      86,300         4,548,873   
     

 

 

  

Food Products – 4.4%

      

General Mills, Inc.(a)

      130,900         4,889,115   

HJ Heinz Co.

      73,500         3,869,040   

Kraft Foods, Inc., Class A(a)

      137,700         4,734,126   

Mead Johnson Nutrition Co.(a)

      79,400         5,666,778   

Unilever NV

      211,400         6,866,272   
     

 

 

  
        26,025,331   
     

 

 

  

Hotels, Restaurants & Leisure – 1.6%

      

McDonald’s Corp.

      113,100         9,780,888   
     

 

 

  

Household Products – 1.5%

      

Kimberly-Clark Corp.

      28,700         1,875,832   

The Procter & Gamble Co.(a)

      115,300         7,089,797   
     

 

 

  
        8,965,629   
     

 

 

  

Industrial Conglomerates – 2.6%

      

3M Co.

      64,000         5,576,960   

General Electric Co.(a)

      565,800         10,133,478   
     

 

 

  
        15,710,438   
     

 

 

  

Insurance – 3.1%

      

Chubb Corp.

      95,400         5,960,592   

Prudential Financial, Inc.(a)

      77,900         4,571,172   

The Travelers Cos., Inc.

      143,200         7,894,616   
     

 

 

  
        18,426,380   
     

 

 

  

IT Services – 2.2%

      

Automatic Data Processing, Inc.(a)

      30,260         1,558,087   

International Business Machines Corp.(a)

      63,700         11,583,845   
     

 

 

  
        13,141,932   
     

 

 

  

Leisure Equipment & Products – 0.5%

      

Mattel, Inc.

      109,000         2,905,940   
     

 

 

  

Machinery – 4.1%

      

Caterpillar, Inc.(a)

      127,200         12,566,088   

Deere & Co.(a)

      149,400         11,729,394   
     

 

 

  
        24,295,482   
     

 

 

  

Media – 0.9%

      

Comcast Corp.(a)

      227,400         5,307,516   
     

 

 

  

Metals & Mining – 4.2%

      

BHP Billiton Ltd. - ADR(a)

      184,100         16,854,355   

Rio Tinto Plc - ADR(a)

      76,900         5,458,362   

Southern Copper Corp.(a)

      68,800         2,350,208   
     

 

 

  
        24,662,925   
     

 

 

  

Multi-Utilities – 2.3%

      

Consolidated Edison, Inc.(a)

      27,300         1,435,980   

Dominion Resources, Inc.

      108,000         5,232,600   

 

         JULY 31, 2011   1

Schedule of Investments (continued)    BlackRock Enhanced Equity Dividend Trust (BDJ)
   (Percentages shown are based on Net Assets)

 

      Shares      Value  

Common Stocks

      

Multi-Utilities (concluded)

      

Public Service Enterprise Group, Inc.

      108,200       $ 3,543,550   

Sempra Energy(a)

      36,500         1,850,185   

Wisconsin Energy Corp.

      61,800         1,894,170   
     

 

 

  
        13,956,485   
     

 

 

  

Oil, Gas & Consumable Fuels – 13.8%

      

Chevron Corp.

      186,800         19,430,936   

ConocoPhillips

      103,000         7,414,970   

Enbridge, Inc.

      219,300         7,200,210   

EQT Corp.(a)

      80,000         5,078,400   

Exxon Mobil Corp.(a)

      170,000         13,564,300   

Kinder Morgan, Inc.(a)(b)

      36,900         1,041,687   

Marathon Oil Corp.

      127,200         3,939,384   

Marathon Petroleum Corp.(b)

      63,600         2,785,044   

Murphy Oil Corp.(a)

      13,500         866,970   

Occidental Petroleum Corp.(a)

      67,000         6,578,060   

Peabody Energy Corp.(a)

      23,000         1,321,810   

Spectra Energy Corp.(a)

      96,300         2,602,026   

Total SA - ADR

      191,600         10,359,812   
     

 

 

  
        82,183,609   
     

 

 

  

Paper & Forest Products – 1.1%

      

MeadWestvaco Corp.

      139,000         4,328,460   

Weyerhaeuser Co.

      116,300         2,324,837   
     

 

 

  
        6,653,297   
     

 

 

  

Pharmaceuticals – 5.7%

      

Abbott Laboratories(a)

      92,000         4,721,440   

Bristol-Myers Squibb Co.(a)

      312,000         8,941,920   

Johnson & Johnson

      95,700         6,200,403   

Merck & Co., Inc.(a)

      173,800         5,931,794   

Pfizer, Inc.(a)

      415,400         7,992,296   
     

 

 

  
        33,787,853   
     

 

 

  

Road & Rail – 1.9%

      

Canadian National Railway Co.

      91,300         6,834,718   

Union Pacific Corp.(a)

      42,000         4,304,160   
     

 

 

  
        11,138,878   
     

 

 

  

Semiconductors & Semiconductor Equipment – 0.8%

      

Intel Corp.(a)

      225,000         5,024,250   
     

 

 

  

Software – 0.5%

      

Microsoft Corp.(a)

      114,200         3,129,080   
     

 

 

  

Specialty Retail – 1.9%

      

Home Depot, Inc.(a)

      155,100         5,417,643   

Limited Brands, Inc.(a)

      154,700         5,856,942   
     

 

 

  
        11,274,585   
     

 

 

  

Textiles, Apparel & Luxury Goods – 1.1%

      

VF Corp.(a)

      57,500         6,716,000   
     

 

 

  

Tobacco – 3.2%

      

Altria Group, Inc.(a)

      121,000         3,182,300   

Lorillard, Inc.(a)

      44,500         4,726,790   

Philip Morris International, Inc.(a)

      152,700         10,867,659   
     

 

 

  
        18,776,749   
     

 

 

  

Water Utilities – 0.6%

      

American Water Works Co., Inc.

      120,700         3,379,600   
     

 

 

  

Wireless Telecommunication Services – 0.6%

      

Rogers Communications, Inc., Class B

      24,300         927,797   

Vodafone Group Plc - ADR(a)

      99,100         2,784,711   
     

 

 

  
        3,712,508   
     

 

 

  

Total Common Stocks – 94.8%

         563,881,320   
     

 

 

  

Exchange-Traded Funds – 2.6%

      

SPDR S&P 500 ETF Trust(a)

      120,000         15,486,000   
     

 

 

  

Total Long-Term Investments
(Cost – $567,862,381) – 97.4%

         579,367,320   
     

 

 

  

Short-Term Securities

      

BlackRock Liquidity Funds, TempFund, Institutional Class,

      

0.06%(c)(d)

      14,824,214         14,824,214   
     

 

 

  

Total Short-Term Securities
(Cost – $14,824,214) – 2.5%

         14,824,214   
     

 

 

  

Total Investments Before Outstanding Options Written
(Cost – $582,686,595*) – 99.9%

         594,191,534   
     

 

 

  
     Contracts         

Options Written

      

Exchange-Traded Call Options Written – (0.6)%

      

Abbott Laboratories:

      

Strike Price USD 53.75, Expires 8/12/11

      75         (326 ) 

Strike Price USD 52.50, Expires 8/22/11

      432         (13,608 ) 

Altria Group, Inc., Strike Price USD 27, Expires 9/19/11

      670         (22,445 ) 

American Electric Power Co., Inc., Strike Price USD 38, Expires 9/19/11

      390         (9,750 ) 

AT&T Inc., Strike Price USD 30, Expires 9/19/11

      1,870         (86,020 ) 

Automatic Data Processing, Inc., Strike Price USD 52.50, Expires 8/22/11

      165         (9,075 ) 

Bank of America Corp., Strike Price USD 10, Expires 8/22/11

      1,210         (33,880 ) 

The Bank of New York Mellon Corp., Strike Price USD 26, Expires 9/19/11

      300         (19,800 ) 

BCE, Inc., Strike Price USD 40, Expires 9/19/11

      313         (10,172 ) 

BHP Billiton Ltd. - ADR:

      

Strike Price USD 100, Expires 8/22/11

      224         (5,712 ) 

Strike Price USD 95, Expires 8/22/11

      790         (91,245 ) 

Bristol-Myers Squibb Co., Strike Price USD 28, Expires 8/22/11

      1,715         (169,785 ) 

Caterpillar, Inc.:

      

Strike Price USD 111, Expires 8/22/11

      300         (9,860 ) 

Strike Price USD 110, Expires 8/22/11

      80         (3,560 ) 

Strike Price USD 110, Expires 9/19/11

      320         (40,480 ) 

CenturyLink, Inc., Strike Price USD 41, Expires 8/22/11

      580         (2,900 ) 

The Coca-Cola Co., Strike Price USD 67.50, Expires 8/22/11

      620         (84,010 ) 

Comcast Corp., Strike Price USD 25, Expires 8/22/11

      235         (4,700 ) 

 

2        JULY 31, 2011    

Schedule of Investments (continued)    BlackRock Enhanced Equity Dividend Trust (BDJ)
   (Percentages shown are based on Net Assets)

 

     Contracts      Value  

Options Written

      

Exchange-Traded Call Options Written (continued)

      

Consolidated Edison, Inc., Strike Price USD 52.75, Expires 9/12/11

      150       $ (9,478 ) 

Deere & Co., Strike Price USD 82.50, Expires 8/22/11

      820         (100,860 ) 

Diageo Plc - ADR:

      

Strike Price USD 85, Expires 8/22/11

      220         (6,050 ) 

Strike Price USD 85, Expires 9/19/11

      195         (16,575 ) 

The Dow Chemical Co., Strike Price USD 36, Expires 8/22/11

      226         (14,464 ) 

E.I. du Pont de Nemours & Co., Strike Price USD 55, Expires 8/22/11

      485         (8,972 ) 

EQT Corp., Strike Price USD 60, Expires 8/22/11

      140         (59,500 ) 

Exxon Mobil Corp., Strike Price USD 82.50, Expires 8/22/11

      360         (20,700 ) 

Frontier Communications Corp., Strike Price USD 8, Expires 8/22/11

      184         (1,840 ) 

General Dynamics Corp., Strike Price USD 72.50, Expires 9/19/11

      460         (37,950 ) 

General Electric Co.:

      

Strike Price USD 19, Expires 8/22/11

      1,248         (17,472 ) 

Strike Price USD 20, Expires 9/19/11

      880         (9,680 ) 

General Mills, Inc.:

      

Strike Price USD 38, Expires 8/22/11

      186         (5,115 ) 

Strike Price USD 38, Expires 9/19/11

      330         (19,965 ) 

Hewlett-Packard Co., Strike Price USD 36, Expires 8/22/11

      1,112         (89,516 ) 

Home Depot, Inc., Strike Price USD 37, Expires 8/22/11

      130         (3,380 ) 

Honeywell International, Inc.:

      

Strike Price USD 59, Expires 8/12/11

      221         (609 ) 

Strike Price USD 57.50, Expires 8/22/11

      285         (5,272 ) 

Intel Corp., Strike Price USD 22, Expires 8/22/11

      1,230         (83,025 ) 

International Business Machines Corp., Strike

      

Price USD 175, Expires 8/22/11

      350         (269,500 ) 

ITC Holdings Corp., Strike Price USD 71.50, Expires 8/31/11

      105         (10,238 ) 

Johnson Controls, Inc.:

      

Strike Price USD 41, Expires 8/22/11

      110         (1,100 ) 

Strike Price USD 42, Expires 8/22/11

      381         (3,810 ) 

JPMorgan Chase & Co.:

      

Strike Price USD 42, Expires 8/22/11

      1,460         (90,520 ) 

Strike Price USD 43, Expires 9/19/11

      700         (54,600 ) 

Kinder Morgan, Inc., Strike Price USD 28.75, Expires 8/31/11

      200         (13,147 ) 

Kraft Foods, Inc., Class A, Strike Price USD 36, Expires 8/22/11

      500         (5,500 ) 

Limited Brands, Inc.:

      

Strike Price USD 41, Expires 8/22/11

      315         (11,025 ) 

Strike Price USD 40, Expires 8/22/11

      540         (32,400 ) 

Lorillard, Inc., Strike Price USD 110, Expires 8/22/11

      250         (38,750 ) 

M&T Bank Corp., Strike Price USD 85, Expires 8/22/11

      94         (25,145 ) 

Mead Johnson Nutrition Co., Strike Price USD 70, Expires 8/22/11

      440         (104,720 ) 

Merck & Co., Inc., Strike Price USD 37, Expires 8/22/11

      440         (1,540 ) 

Microsoft Corp., Strike Price USD 27, Expires 9/19/11

      500         (56,750 ) 

Murphy Oil Corp.:

      

Strike Price USD 65, Expires 8/22/11

      40         (6,800 ) 

Strike Price USD 67.50, Expires 8/22/11

      40         (3,600 ) 

Northeast Utilities, Strike Price USD 35.50, Expires 9/19/11

      375         (9,242 ) 

Northrop Grumman Corp., Strike Price USD 67.50, Expires 8/22/11

      500         (5,000 ) 

Occidental Petroleum Corp., Strike Price USD 105, Expires 8/22/11

      325         (26,488 ) 

Olin Corp., Strike Price USD 22.50, Expires 8/22/11

      685         (10,275 ) 

Peabody Energy Corp., Strike Price USD 62.50, Expires 9/19/11

      125         (15,312 ) 

Pfizer, Inc.:

      

Strike Price USD 21, Expires 8/22/11

      1,360         (6,120 ) 

Strike Price USD 20, Expires 8/22/11

      100         (1,650 ) 

Philip Morris International, Inc.:

      

Strike Price USD 70, Expires 8/22/11

      270         (58,725 ) 

Strike Price USD 67.50, Expires 8/22/11

      570         (233,700 ) 

PPL Corp.:

      

Strike Price USD 27.85, Expires 8/22/11

      155         (6,643 ) 

Strike Price USD 27.85, Expires 9/06/11

      155         (7,594 ) 

Praxair, Inc.:

      

Strike Price USD 115, Expires 8/22/11

      162         (1,620 ) 

Strike Price USD 110, Expires 9/19/11

      80         (6,000 ) 

The Procter & Gamble Co., Strike Price USD 65, Expires 8/22/11

      635         (7,620 ) 

Prudential Financial, Inc., Strike Price USD 62.50, Expires 8/22/11

      430         (30,960 ) 

Raytheon Co., Strike Price USD 49, Expires 8/22/11

      125         (625 ) 

Rio Tinto Plc - ADR, Strike Price USD 72.50, Expires 8/22/11

      422         (50,640 ) 

Rockwell Automation, Inc., Strike Price USD 85, Expires 8/22/11

      152         (1,520 ) 

Schlumberger Ltd., Strike Price USD 85, Expires 8/22/11

      270         (175,500 ) 

Sempra Energy, Strike Price USD 52.50, Expires 9/19/11

      200         (11,500 ) 

The Southern Co., Strike Price USD 40, Expires 8/22/11

      550         (16,775 ) 

Southern Copper Corp., Strike Price USD 37, Expires 9/19/11

      380         (24,700 ) 

SPDR S&P 500 ETF Trust:

      

Strike Price USD 134, Expires 8/22/11

      300         (28,200 ) 

Strike Price USD 135, Expires 8/22/11

      300         (19,650 ) 

Spectra Energy Corp., Strike Price USD 27.50, Expires 8/22/11

      530         (15,068 ) 

Temple-Inland, Inc., Strike Price USD 31, Expires 8/22/11

      440         (11,000 ) 

The Toronto-Dominion Bank:

      

Strike Price USD 85, Expires 8/22/11

      235         (6,462 ) 

Strike Price USD 82.50, Expires 8/22/11

      90         (7,425 ) 

U.S. Bancorp:

      

Strike Price USD 25, Expires 8/22/11

      650         (92,950 ) 

Strike Price USD 24.95, Expires 9/09/11

      730         (117,872 ) 

Union Pacific Corp.:

      

Strike Price USD 100, Expires 8/22/11

      51         (21,930 ) 

Strike Price USD 105, Expires 8/22/11

      180         (29,610 ) 

United Parcel Service, Class B:

      

Strike Price USD 72.50, Expires 8/22/11

      310         (8,835 ) 

Strike Price USD 75, Expires 8/22/11

      60         (570 ) 

 

         JULY 31, 2011   3

Schedule of Investments (continued)    BlackRock Enhanced Equity Dividend Trust (BDJ)
   (Percentages shown are based on Net Assets)

 

      Contracts      Value  

Options Written

      

Exchange-Traded Call Options Written (concluded)

      

United Technologies Corp., Strike Price USD 92.50, Expires 8/22/11

      660       $ (4,290 ) 

VF Corp., Strike Price USD 110, Expires 8/22/11

      300         (237,000 ) 

Vodafone Group Plc - ADR, Strike Price USD 27, Expires 8/22/11

      545         (73,575 ) 

Wells Fargo & Co.:

      

Strike Price USD 27, Expires 8/22/11

      825         (117,562 ) 

Strike Price USD 28, Expires 8/22/11

      825         (69,300 ) 

Strike Price USD 30, Expires 9/19/11

      820         (38,540 ) 

Windstream Corp., Strike Price USD 12.75, Expires 8/31/11

      260         (1,691 ) 
     

 

 

  

Total Exchange-Traded Call Options Written

         (3,466,635 ) 
     

 

 

  

Over-the-Counter Call Options Written – (0.2)%

      

American Express Co., Strike Price USD 51.50, Expires 9/14/11, Broker Morgan Stanley & Co., Inc.

      72,000         (88,560 ) 

American Water Works Co., Inc., Strike Price USD 29.35, Expires 8/09/11, Broker Goldman Sachs & Co.

      66,500         (1,342 ) 

Bank of Nova Scotia, Strike Price CAD 59, Expires 8/22/11, Broker T.D. Securities

      650         (4,082 ) 

CenturyLink, Inc., Strike Price USD 39.62, Expires 9/08/11, Broker UBS Securities LLC

      72,000         (16,774 ) 

Chevron Corp., Strike Price USD 106.76, Expires 9/13/11, Broker Morgan Stanley & Co., Inc.

      103,000         (218,956 ) 

Comcast Corp., Strike Price USD 22.87, Expires 8/04/11, Broker Morgan Stanley & Co., Inc.

      101,500         (55,028 ) 

Dominion Resources, Inc, Strike Price USD 48.50, Expires 8/31/11, Broker Deutsche Bank Securities Corp.

      60,000         (50,092 ) 

Duke Energy Corp., Strike Price USD 19, Expires 8/31/11, Broker Citigroup Global Markets, Inc.

      66,000         (7,045 ) 

E.I. du Pont de Nemours & Co., Strike Price USD 55.02, Expires 9/06/11, Broker Goldman Sachs & Co.

      30,600         (13,746 ) 

Enbridge, Inc., Strike Price CAD 31.50, Expires 9/19/11, Broker T.D. Securities

      1,205         (80,085 ) 

EQT Corp., Strike Price USD 50.99, Expires 8/08/11, Broker Citigroup Global Markets, Inc.

      30,000         (374,610 ) 

Exxon Mobil Corp.:

      

Strike Price USD 79.80, Expires 8/02/11, Broker Morgan Stanley & Co., Inc.

      18,500         (11,129 ) 

Strike Price USD 83.37, Expires 9/09/11, Broker Morgan Stanley & Co., Inc.

      36,500         (29,916 ) 

FirstEnergy Corp., Strike Price USD 43.30, Expires 8/31/11, Broker Deutsche Bank Securities Corp.

      14,000         (23,850 ) 

General Electric Co.:

      

Strike Price USD 18.90, Expires 8/30/11, Broker Citigroup Global Markets, Inc.

      49,000         (10,314 ) 

Strike Price USD 19.06, Expires 9/08/11, Broker UBS Securities LLC

      49,000         (10,137 ) 

General Mills, Inc., Strike Price USD 37.85, Expires 8/31/11, Broker Goldman Sachs & Co.

      20,600         (8,946 ) 

HJ Heinz Co., Strike Price USD 53.62, Expires 8/12/11, Broker Goldman Sachs & Co.

      40,000         (5,891 ) 

Johnson & Johnson, Strike Price USD 67.54, Expires 8/25/11, Broker Morgan Stanley & Co., Inc.

      52,500         (9,487 ) 

Kraft Foods, Inc., Class A, Strike Price USD 34.30, Expires 8/10/11, Broker UBS Securities LLC

      26,000         (11,085 ) 

Marathon Oil Corp., Strike Price USD 52.65, Expires 8/09/11, Broker Morgan Stanley & Co., Inc.

      69,000         (89,157 ) 

Mattel, Inc., Strike Price USD 27.50, Expires 9/12/11, Broker Deutsche Bank Securities Corp.

      60,000         (22,860 ) 

McDonald’s Corp., Strike Price USD 86, Expires 8/29/11, Broker Goldman Sachs & Co.

      62,000         (111,102 ) 

MeadWestvaco Corp., Strike Price USD 33.25, Expires 9/16/11, Broker Citigroup Global Markets, Inc.

      76,500         (30,348 ) 

Merck & Co., Inc., Strike Price USD 36.75, Expires 8/05/11, Broker Morgan Stanley & Co., Inc.

      52,000         (86 ) 

National Bank of Canada, Strike Price CAD 80, Expires 8/22/11, Broker T.D. Securities

      528         (3,039 ) 

NextEra Energy, Inc., Strike Price USD 57.40, Expires 8/31/11, Broker Societe General Securities Corp.

      55,000         (18,457 ) 

Occidental Petroleum Corp., Strike Price USD 107.19, Expires 9/06/11, Broker Goldman Sachs & Co.

      4,500         (4,425 ) 

Public Service Enterprise Group, Inc., Strike Price USD 32, Expires 9/12/11, Broker UBS Securities LLC

      59,000         (83,727 ) 

Raytheon Co., Strike Price USD 45.89, Expires 8/29/11, Broker Citigroup Global Markets, Inc.

      80,500         (47,229 ) 

Rockwell Collins, Inc., Strike Price USD 59, Expires 8/31/11, Broker Deutsche Bank Securities Corp.

      13,300         (2,886 ) 

Rogers Communications, Inc., Class B, Strike Price CAD 38, Expires 8/22/11, Broker T.D. Securities

      133         (1,322 ) 

The Travelers Cos., Inc.:

      

Strike Price USD 59.19, Expires 8/29/11, Broker Goldman Sachs & Co.

      64,000         (10,764 ) 

Strike Price USD 57.98, Expires 9/09/11, Broker Credit Suisse First Boston

      15,000         (5,491 ) 

Unilever NV, Strike Price USD 32.95, Expires 8/12/11, Broker Morgan Stanley & Co., Inc.

      116,000         (41,152 ) 

Weyerhaeuser Co., Strike Price USD 22.41, Expires 8/29/11, Broker Deutsche Bank Securities Corp.

      64,000         (7,208 ) 

Windstream Corp., Strike Price USD 12.60, Expires 8/31/11, Broker Deutsche Bank Securities Corp.

      57,000         (5,416 ) 

Wisconsin Energy Corp., Strike Price USD 31.35, Expires 9/12/11, Broker JPMorgan Chase Securities

      34,000         (6,510 ) 
     

 

 

  

Total Over-the-Counter Call Options Written

         (1,522,254 ) 
     

 

 

  

Total Options Written (Premiums Received – $6,160,584) – (0.8)%

         (4,988,889 ) 
     

 

 

  

 

4        JULY 31, 2011    

Schedule of Investments (concluded)    BlackRock Enhanced Equity Dividend Trust (BDJ)
   (Percentages shown are based on Net Assets)

 

     Value  

Total Investments Net of Outstanding Options Written – 99.1%

    $ 589,202,645   

Other Assets Less Liabilities – 0.9%

      5,359,359   
  

 

 

  

Net Assets – 100.0%

    $ 594,562,004   
  

 

 

  

 

* The cost and unrealized appreciation (depreciation) of investments as of July 31, 2011 as computed for federal income tax purposes, were as follows:

 

Aggregate cost

    $ 611,717,274   
  

 

 

  

Gross unrealized appreciation

    $ 21,187,695   

Gross unrealized depreciation

      (38,713,435 ) 
  

 

 

  

Net unrealized depreciation

    $ (17,525,740 ) 
  

 

 

  

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.

 

(b) Non-income producing security.

 

(c) Represents the current yield as of report date.

 

(d) Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

    Shares Held at
October 31,
2010		      Net Activity      Shares Held at
July  31,
2011		      Realized Gain      Income  

BlackRock Liquidity Funds, TempFund, Institutional Class

      10,960,825         3,863,389         14,824,214       $ 255       $ 23,485   

 

•  

Foreign currency exchange contracts as of July 31, 2011 were as follows:

 

Currency
Purchased

   

Currency

Sold

     

Counterparty

    Settlement
Date		      Unrealized
Depreciation		  

USD

   46,959    CAD      45,000      

Citigroup Global Markets, Inc.

      8/02/11       $ (140 ) 

 

•  

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

 

•  

Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – price quotations in active markets/exchanges for identical assets and liabilities

 

  •  

Level 2 – other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •  

Level 3 – unobservable inputs based on the best information available In the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report. The following tables summarize the inputs used as of July 31, 2011 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

Valuation Inputs

    Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments:

            

Common Stocks1

    $ 563,881,320         –         –       $ 563,881,320   

Exchange-Traded Funds

      15,486,000         –         –         15,486,000   

Short-Term Securities

      14,824,214         –         –         14,824,214   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 594,191,534         –         –       $ 594,191,534   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1 

See above Schedule of Investments for values in each industry.

 

Valuation Inputs

    Level 1     Level 2     Level 3      Total  

Derivative Financial Instruments2

          

Liabilities:

          

Equity contracts

    $ (3,353,399 )    $ (1,635,490 )      –       $ (4,988,889 ) 

Foreign currency exchange contracts

      (140 )      –        –         (140 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ (3,353,539 )    $ (1,635,490 )      –       $ (4,989,029 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

 

2 

Derivative financial instruments are foreign currency exchange contracts and options. Foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

 

         JULY 31, 2011   5

Item 2    –    Controls and Procedures
2(a)    –    The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ?1940 Act?)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b)    –    There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3    –    Exhibits
Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock Enhanced Equity Dividend Trust

  
By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
 

Chief Executive Officer (principal executive officer) of

BlackRock Enhanced Equity Dividend Trust

  

Date: September 26, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:  

/s/ John M. Perlowski

    
  John M. Perlowski    
 

Chief Executive Officer (principal executive officer) of

BlackRock Enhanced Equity Dividend Trust

  

Date: September 26, 2011

    
By:  

/s/ Neal J. Andrews

    
  Neal J. Andrews    
 

Chief Financial Officer (principal financial officer) of

BlackRock Enhanced Equity Dividend Trust

  

Date: September 26, 2011